Like it or not - foreclosure houses are a reality. People from all walks of life - good people - can get in trouble with their houses for lots of reasons.
In spite of all the "bad" news, there's a bunch of good news. The good news is that lenders tend to be more willing to work with homeowners given the number of potential defaults looming on the horizon. In reality, homeowners need someone to interact with the bank on their behalf - who knows the "foreclosure dialect", is familiar with the procedures and can guide them through the maze of paperwork.
There are a lot more people available today to help who have these skills and who are willing to:
Investing in Foreclosure Houses - the Good, the Bad and the Ugly
From an investor's perspective...
On the other side of the coin, it's a great opportunity for investors
to create equity in their portfolios and cash flows from their investments. Contrary to the popular opinion amidst a "gold-rush type" investor migration into the foreclosure houses market, it's not all a bed of roses.
Roses have more than petals, they have thorns too...
The petals are the profits. They are the deal "that goes right" without any hitches and on time. They are helping people - who start out desperate and afraid - solve a problem and seeing them smile when they thank you.
The thorns are:
Many who have an interest in selling you something forget to tell you this. You find this out later, on your own.
Big Profits In Foreclosure Investing
On the bright side, there are big profits in foreclosure houses.
Remember that if someone tells you this is an easy business, you need to put that statement into perspective, as in:
Compared to what?
If they tell you that they do 5 or 10 or 15 foreclosure houses a month, you can bet they have spent a lot of time (maybe 2-5 years) and money to get where they are
You might want to ask the person making big claims about foreclosure success to verify his earnings and his claims. I have met a number of 'foreclosure investors' who talk a mean game - but don't really walk softly and carry a big stick.
Handling that many transactions requires a really tight network and/or staff.
It takes a heck of a lot of activity, marketing and time to get that many deals active in your pipeline - and keep it full.
Here's a group of investors who buy
foreclosure houses
, offer specialized mentoring and foreclosure training.
copyright 2003-2006
foreclosure houses
